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Kicking it up a notch
Taking retail bank cross-selling to the next level
Banks may need to revisit traditional cross-selling strategies. Despite high tenure and satisfaction, customers do not hold multiple products with their primary bank.
Cross-selling has become a strategic priority for many banks in recent years. The cost of selling to current customers in many cases is much lower than to new customers, so it makes sense that banks have invested heavily in cross-selling.
Yet, it appears many banks may be far from realizing the full potential of cross-selling. A Deloitte survey notes that existing cross-selling programs may be ineffective: only 19 percent of retail bank customers owned three or more products in addition to a checking account with their primary bank, compared to 49 percent who have three or more products with other financial institutions.
This paper emphasizes the importance of adopting a behavioral segmentation approach that takes into account attitudes and perceptions together with demographics to improve cross-selling.
Strategies for improving cross-selling: By the numbers
Successful efforts to address deficiencies in cross-selling may depend on a more refined understanding:
- Why have customers opted not to expand their product relationships with their primary bank despite years of extensive efforts by banks?
- Is there a need to re-assess and refine how banks approach cross-selling efforts?
- Which consumer segments can banks target to capture higher wallet share?
Download the infographic for additional insights “by the numbers”.